Redeye comments on Nanologica following the annonucement of a SEK8.5m order from its now disclosed customer in China. Today's announcement marks the fifth consecutive order from this specific customer.

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Nanologica

* Additional resources needed for production optimization and scaling, potentially requiring further investment.
* Limited geographic expansion beyond China, potentially constraining growth opportunities.
* Narrow revenue base and potential vulnerability to regulatory changes in the drug development and manufacturing industry.
* Risk of significant adverse impact on business prospects if additional production issues arise, given the company's early stage.

* Strong recurring revenue model with high barriers to entry and switching costs, providing stability and predictability.
* Positioned in a growing market with secular tailwinds, the surge of GLP-1 in obesity will benefit the company's offering greatly.
* Products contribute to the greater good by improving efficiency and reducing production costs for essential medicines.
* Close collaboration with customers for innovation, including developing tailored solutions to meet specific needs.

* Unprofitable with negative cash flows.
* Sales growth have accelerated in 2024 but new customers are required to reach anticipated target.
* Cost base remains high compared to the company's income levels.
* Given the negative cash flow the company relies on capital markets for funding and additional capital could be required if setbacks emerge.

* Recently reinforced balance sheet with outstanding warrants potentially raising more capital.
* Standing before a time of sharp anticiapted sales growth as more customer establish NLAB Siv/Saga into their production processes.
* We expect gross margins to establish around approximately 50% once the company has established a sufficient customer base.
* The company has previously stated an anticipated annual sales run rate of SEK100m in the near term.

* Historical challenges in consistently meeting targets and delivering on promises, with operations often extending beyond projected timelines.
* Limited track record of successful value creation under current leadership, with the company still in early stages of commercialization.
* Management and directors's track record remains unproven in terms of value creation in Nanologica given that the company is still at an early stage of commercialization.

* Nanologica’s board and management have broad sector expertise and provide the company with the know-how required to commercialize its purification media successfully.  
* Insiders with "skin in the game", including management and controlling owners, demonstrating alignment with shareholder interests and long-term commitment.
* Lean, decentralized organization promoting self-direction and accountability, with a well-defined strategic plan focused on value creation.